|
CenturyTel sues Alltel
|
 |
August 21, 2001: 6:10 p.m. ET
Local phone provider sues Alltel after rejecting $6.1B unsolicited takeover bid
|
NEW YORK (CNNfn) - CenturyTel Inc. has sued Alltel Corp. alleging the company is making untrue statements and to prevent the rival from interfering in plans to sell its wireless operations.
The lawsuit, filed in U.S. District Court for the Western District of Louisiana, seeks to stop Alltel from making false and misleading public statements to promote its $6.1 billion offer to acquire CenturyTel.
The company also hopes to thwart Alltel from unlawfully interfering in its bid to separate its wireless operations.
CenturyTel filed the lawsuit Aug. 17 but disclosed the claim in an Securities and Exchange Commission filing Tuesday.
Alltel responded late Tuesday, calling the lawsuit without merit.
"Alltel would like to sit down with CenturyTel management and discuss Alltel's proposal for a friendly merger of our two companies," the company said in a statement. "We think it would be much more productive to negotiate than litigate."
Last week, rural telecommunications company Alltel launched a $6.1 billion unsolicited bid for CenturyTel Inc., after its attempts to merge with the company were rebuffed by the CenturyTel board.
CenturyTel rejected Alltel again and then announced it was in discussions with a number of parties to sell its wireless operations.
Little Rock, Ark.-based Alltel (AT: down $0.15 to $57.22, Research, Estimates) targets the Midwest and Southeast providing wireless, local phone and long distance services to about 10 million customers. Monroe, La.-based CenturyTel (CTL: up $0.23 to $35.40, Research, Estimates) offers wireless, long distance and Internet access to more than three million customers in 21 states.
CenturyTel alleged Tuesday that Alltel's untrue accounts include claiming that CenturyTel's board did not give serious consideration to Alltel's merger proposal. The "false and fraudulent" statements are part of a plan by Alltel to mislead CenturyTel shareholders and make them more receptive to friendly negotiations, CenturyTel claims.
CenturyTel is seeking injunctive relief and damages. 
|
|
|
|
|
 |
|
